Florida Moving Toward Taxing HTPs Differently

From: TOBACCO REPORTER (Thank you, Baron Feraro, PMIUS)

A Florida House panel advanced legislation that would establish a separate tax structure for heated tobacco products (HTPs), distinguishing them from traditional cigarettes under state law. The bill (HB 377), introduced by Rep. Chase Tramont, reinforces an existing Department of Business and Professional Regulation interpretation that classifies HTPs as “other tobacco products” rather than cigarettes. The change would allow HTPs to be taxed at a lower rate than cigarettes, which are currently taxed at approximately $1.34 per pack. The measure cleared the House Industries and Professional Activities Subcommittee with bipartisan support, though some lawmakers raised concerns about offering tax incentives for products that still pose health risks.

The legislation defines HTPs as tobacco-containing products used in electronic devices that heat, rather than burn, tobacco to produce an inhalable aerosol. Supporters, including Florida TaxWatch, argue that differentiated taxation could encourage smokers to transition away from combustible cigarettes. The bill now heads to the Commerce Committee, while a companion Senate measure (SB 754) continues moving through committee review.